SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
for the period ended 26 June, 2007
BP p.l.c.
(Translation of registrant's name into English)
1 ST JAMES'S SQUARE, LONDON, SW1Y 4PD, ENGLAND
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form 20-F |X| Form 40-F
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Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934.
Yes No |X|
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June 26, 2007
BP, ABF AND DUPONT UNVEIL $400 MILLION
INVESTMENT IN UK BIOFUELS
The wide spread availability of biofuels in the UK took a major step forward
today as BP, Associated British Foods (ABF) and DuPont announced major
investment plans, totalling around $400 million, for the construction of a world
scale bioethanol plant alongside a high technology demonstration plant to
advance development work on the next generation of biofuels.
The bioethanol plant, in which BP and ABF subsidiary British Sugar would each
hold 45 per cent with DuPont owning the remaining 10 per cent, will be built on
BP's existing chemicals site at Saltend, Hull. Due to be commissioned in late
2009, it will have an annual production capacity of some 420 million litres from
wheat feedstock.
Although initial production would be bioethanol, the partners will look at the
feasibility of converting it to biobutanol once the required technology is
available.
"We are delighted to be announcing, subject to the necessary approvals, the
construction of a world scale bioethanol plant in Hull with our partners ABF and
DuPont to enable petrol biocomponents to be available to meet the 2010 Renewable
Transport Fuel Obligation," said Iain Conn, chief executive officer of BP's
refining and marketing business. "In addition we have also selected Hull as the
preferred location for a planned biobutanol demonstration plant as laboratory
research work on the production of this first advanced biofuel that we and
partners DuPont will bring to market is progressing well."
Discussions are currently underway to explore strategic partnerships with grain
trading business Frontier Agriculture for the supply of locally grown wheat
feedstocks and with co-product marketing company AB Agri in relation to DDGS, a
byproduct of bioethanol manufacture. It is expected that formal agreements would
be finalised after regulatory approvals are obtained.
"We are delighted that this exciting new project has achieved this important
milestone, and are confident that construction work will commence early next
year after the required regulatory approvals are obtained," said Mark Carr, CEO
of British Sugar. "Front end engineering and design work will commence
immediately with Aker Kvaerner leading the project and their joint venture
partner Praj providing the technology expertise."
Although the plant will be built from scratch, it will have access to the
existing infrastructure at the BP site for essential supporting services. Once
operational it will provide around 70 new full-time posts in addition to the
employment opportunities generated by the construction phase.
The BP site in Hull has also been selected as the preferred location for a
planned biobutanol demonstration plant, funded and owned equally by BP and
DuPont which could produce around 20,000 litres of biobutanol a year from a wide
variety of feedstocks.
"Over the last year, we have accelerated the commercial development of
biobutanol," said John Ranieri, head of DuPont Biofuels. "The demonstration
facility, which will begin operation in early 2009, will develop the processing
parameters and further advance the commercial deployment of our new technology.
At the same time, the growing market demand for biofuels is significant. We are
concurrently investing in the Hull bioethanol facility with the intention to
increase that investment once biobutanol process technology development is
completed and conversion feasibility is validated."
To begin market development of biobutanol, BP and DuPont are also establishing
initial introduction plans for biobutanol in the UK. The companies will import
small quantities of biobutanol, sourced from an existing first generation
manufacturing facility in China. The first product is expected to arrive by the
end of the year and will be used to carry out infrastructure and advanced
vehicle testing.
This testing will build upon initial laboratory engine tests using conventional
butanol which indicated that butanol has similar fuel performance properties to
unleaded petrol. In addition, work will be undertaken to gather comprehensive
data on the environmental footprint and sustainability of this next generation
fuel.
"The three initiatives we have announced today represent a significant first
step in delivering BP's strategy for biofuels," commented Phil New, head of BP
Biofuels. "As a UK based company, BP is delighted to be the first energy company
to commit significant resources to building this important market of the future
in the UK, and at the same time, bring a new product of global relevance closer
to reality."
Notes to Editors:
- An electronic press kit, including downloadable images, is available
at http://www.launchgroup.co.uk/epk/bpbiofuels/
- Transport accounts for around 21 per cent of all carbon dioxide
emissions.
- The Renewable Transport Fuel Obligation (RTFO) requires 5 per cent of UK
transport fuel to come from biofuels by 2010.
- BP and DuPont announced the creation of a partnership to develop, produce
and market a next generation of biofuels in June 2006. The partnership
leverages DuPont's world-class biotechnology and bio-manufacturing
capabilities with BP's fuels technology expertise and market knowledge.
- Biobutanol has a low vapour pressure and its tolerance to water
contamination in gasoline blends facilitate its use in existing gasoline
supply and distribution channels. It has the potential to be blended into
gasoline at larger concentrations than existing biofuels without the need to
retrofit vehicles and it offers better fuel economy than gasoline-ethanol
blends, improving a car's fuel efficiency and mileage.
- BP is already a leading player in the biofuels market, accounting for around
10 per cent globally, blending and distributing 800 million gallons of
ethanol in 2006.
- BP is funding a $9.4 million project in India to demonstrate the feasibility
of producing biodiesel from jatropha curcas.
- BP's Bulwer Refinery in Queensland, Australia will produce around 110
million litres of biodiesel a year from tallow feedstock.
Further information:
BP Press Office, London, tel: +44 (0)207 496 4076
Associated British Foods, London, tel: +44 (0)207 399 6500
DuPont Press Office, USA, tel: +1 302 774 7447
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BP p.l.c.
(Registrant)
Dated: 26 June, 2007 /s/ D. J. PEARL
..............................
D. J. PEARL
Deputy Company Secretary